Financial determinants of tea productivity in Kericho County Kenya

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Abstract

The researcher built a case that led to the problem being solved. This study sought to
establish the financial determinants of tea productivity in Kericho County in Kenya. Tea is a
major cash crop that is grown in Kenya. In Kenya tea is ranked as the third major foreign
exchange earner, behind tourism and horticulture. Most tea produced in Kenya is black tea;>
however green tea, yellow tea, and white tea are produced on order by major tea produce. In
Kenya tea is the main export cash crop and a source of income for the residents. However, it
is notable that tea production in Kericho County is faced with a lot of challenges. The current
state of tea sector in Kenya is a product of many factors including the country's colonial
history, resource endowments, the prevailing socio-economic environment, regional
economic relations and the general policy environment. This study sought to investigate
financial determinants of tea production in Kericho County. The study however, was based
on the following specific objective: to identify financial determinants of tea productivity in
Kericho county.to analyze the effects of financial determinants of tea productivity in Kericho
county and to devise possible remedies in curbing the effects of financial determinants of tea
productivity in Kericho county.The study framework was 2005 to 20'11. A survey design was
used to collect data from an identified group of people with the objective of determining
current status of that group of people with respect to one or more variables .in this design, the
researcher selects a sample of subjects and administers questionnaires or conducts interviews
to collect data. A survey is normally employed in research to describe attitudes, beliefs,
opinions among other personal attributes .The target population comprised of all the unit
managers in KTDA factories and 50 tea farmers in Kericho County. The sample size was 90,
which comprised of 40 unit managers and 50 tea farmers, given that it was not be easy to get
such a population with the same characteristic's. The main research instrument that was used
was the questionnaires. Pilot study in the field assisted in the evaluation and amendment and
modifications that were necessary in the instruments used in this study will be effected
accordingly. After obtaining permission from the relevant authorities in Kenyatta University
and relevant authorities from the area of the study, the researcher visited the target population
for collection of data. The results were reported using descriptive statistics such as frequency
tables, graphs and charts. The findings showed majority of farmers in Kericho County are
male. The findings also showed that most farmers fall under the age bracket of 31-40 and
majority are diploma holders from different institutions. The researcher recommended that
the farmers should improve on different strategies that will contain fluctuations in tea
productivity, i.e. accessibility to loans, training and extension services and involvement in
decision making. The researcher suggested that further studies be carried out on financial
determinants of effective laborers in tea plantations in Kericho County and effects of
financial determinants on dividend payments to farmers in Kericho County.